The mineral lease got cancelled by the state, so it is not an asset in bankruptcy court. The State of Minnesota can issue the minerals lease to whomever it would like.
The final nail in the coffin for Essar. The Essar people were a bunch of idiots and the CLF CEO called it that way from the start. No one on Wall Street believed the CLF CEO. He had this whole thing figured out well 18 months ago.
here is what the resident idiot ohtaegun posted when CLF shares were $3 on May 27th...
support weak - resistance strong
by ohtaegun • May 27, 2016 9:06 AM Flag
signs of a weak stock w/ no support.
his cuts thru support like a hot knife, but resistance is like a brick wall.
I wonder where the fruitcake poster ohtaegon disappeared to. Probably back to his trailer home. That guy was such a loser.
And solarmanmike? He must have violated his parole and be back in prison.
Can you imagine that the Macquarie guy bails out on CLF at about $1.35 (after shares collapse form +$100) and then as soon as he reduces his rating to "neutral", the share price quadruples.
Mar-11-16 Initiated Credit Suisse Underperform
Feb-05-16 Reiterated Deutsche Bank Sell $1.50 → $1
Jan-08-16 Downgrade Macquarie Outperform → Neutral
Who can remember the last time CLF raised guidance like this. The are reopening one of its closed mines months head of schedule to meet demand from US Steel Canada, a new customer who will now buy ALL of its iron ore from CLF (as its formerly captive supplier of iron ore, US Steel, is now a competitor).
This is significant news for sure. To land a major new customer with large volumes in a market that is well established and where supplier relationships are hard to change is a big deal. I have to hand it to the CLF CEO. This is the tip of the iceberg. Other steel customers are going to go with CLF more and more as CLF is making all the right moves.
The news release also said that CLF is seeing strong demand from its other customers, but the company did not increase guidance because of this. To me, that means that there will be further meaningful increases in guidance over the next twelve months.
CLF shares should be up 15% on this news.
good posts from other contributors... so let's add them to the list...
15. Huge rebound in the prices for CLF bonds, especially the 2018 bonds which have increased from $0.18 to $0.90 on the dollar of principal.
16. Large insider buys of stock from CEO.
17. Sale of 100% of Casablanca's 7% position in CLF, removing a big overhang.
18. New investor Bob Connell purchases a massive 11% stake in CLF.
19. Global Iron Ore Industry Association names CLF CEO as the most influential executive in the industry for 2016.
1. CLF reduces debt load meaningfully through repayments and bond repurchases.
2. Bloom Lake eliminated and total company bankruptcy averted.
3. Potential new competitor Essar Minnesota fails.
4. Essar Canada put into bankruptcy and CLF resigns them as a customer under new ownership as Essar of India bails out on North America and retreats to India with its tail between its legs.
5. Costs to produce iron ore and pellets reduced dramatically in every operation.
6. Management sells off virtually all non-core assets as promised.
7. US places massive duties on foreign dumped steel and demand and prices for US made steel rise dramatically.
8. CLF reopens closed mines.
9. CLF lands US Steel Canada as a new customer.
10. CLF working diligently on setting up DRI pellet operation. Test volumes manufactured and delivered to clients.
11. CLF signs a new 10-year contract with its largest customer, replacing contracts that were expiring in late 2016 and early 2017.
12. Price for seaborne iron ore well up off the bottom prices.
13. CLF shares are unchanged over the past 12 months, although 2 year chart shows a massive bottom base and upside breakout off the bottom.
14. World's largest iron ore pellet plant (Samarco) closes down removing 20% of the pellet supply from the world markets in one fell swoop. The plant, if it can reopen, will operate at most at 50% for several years.
What is not to like about this situation.